Designated Roth accounts in a 401(k) Plan must be included in the “total account balance,” when calculating required minimum distributions under 401(a)(9) rules.

A.&nbsp

True

B.&nbsp

False

2.

The primary reason for a participant to establish a designated Roth account by making 401(k) Roth deferrals is to accumulate Roth contributions and earnings over the long-term, to ultimately take a Qualified Distribution that can be made tax-free or to request a direct rollover be made to a Roth IRA.

A.&nbsp

True

B.&nbsp

False

3.

CPAs and tax attorneys have suggested that, as 401(k) plan participants are reaching the age of 70-1/2, it is smart planning to take distribution of their designated Roth accounts from the 401(k) Plan and request a direct rollover to a Roth IRA.

A.&nbsp

True

B.&nbsp

False

4.

Roth IRA accounts are not subject to rules for required minimum distributions under 401(a)(9).

A.&nbsp

True

B.&nbsp

False

5.

It could be considered malpractice if a TPA firm consultant were to encourage and influence a plan participant to take withdrawals or distributions of salary deferrals, first from a designated Roth account – simply to focus on current income tax savings.

A.&nbsp

True

B.&nbsp

False

6.

One thing that is unique about a “5% owner” who is now age 70-1/2 is that it is possible that such an individual may have met the conditions for a Qualified Distribution from a designated Roth account – being well over the age of 59-1/2 and possibly having “5-years on the 401(k) Roth clock,” given the fact that 401(k) Plans could potentially have been providing for Roth deferrals since 2006.

A.&nbsp

True

B.&nbsp

False

7.

It may have been prohibitive for highly paid employees to establish a Roth IRA – due to the compensation limits that apply when a taxpayer wants to make Roth IRA contributions.

A.&nbsp

True

B.&nbsp

False

8.

The compensation limits for Roth IRA do not apply when a taxpayer wants to make a direct rollover from a designated Roth account in a 401(k) Plan to a Roth IRA.

A.&nbsp

True

B.&nbsp

False

9.

With longer life expectancies, wealthier plan participants may need to think in terms of a “layered” strategy for their retirement income, including diversification between pre-tax and Roth after-tax savings, as well as “staggered” timing when considering lump sums, annuity payments, Social Security payments, Roth IRA accounts, and even the newer Longevity annuities.

A.&nbsp

True

B.&nbsp

False

10.

In a calendar plan year 401(k) Plan, the “account balances” applied when calculating the 2015 RMDs under §401(a)(9), would be the total balance as of December 31, 2014.